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VOLUME NO. 2 (2011), ISSUE N O. 8 (AUGUST )
ISSN 0976-2183
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CONTENTS
TITLE & NAME OF THE AUTHOR (S)
Page No.
THE STRATEGY OF DE-INTERNATIONALIZATION OF THE SMES OF THE FOOTWEAR IN THE AREA METROPOLITANA DE GUADALAJARA
PAOLA N. VELAZQUEZ RAZO & JOSE G. VARGAS-HERNANDEZ
PROFILING INDIAN CONSUMERS BASED ON ACCEPTANCE OF MOBILE MARKETING
PLAVINI PUNYATOYA
HOW CAN FREE TRADE EXCEL ECONOMIC GROWTH
SHAHZAD GHAFOOR & UZAIR FAROOQ KHAN
CORPORATE GOVERNANCE AND FIRM PERFORMANCE IN NIGERIA
DR. OFURUM CLIFFORD OBIYO & LEZAASI LENEE TORBIRA
LABOR FORCE VERSUS POPULATION GROWTH RATE - A STUDY OF UNEMPLOYMENT IN J&K STATE
GAURAV SEHGAL & DR. ASHOK AIMA
VALUE ADDED TAX AND ITS IMPLICATION ON PROFITABILITY
DR. SAMBHAV GARG
SWOT ANALYSIS OF DAIRY COOPERATIVES: A CASE STUDY OF WESTERN MAHARASHTRA
DR. PRAKASHKUMAR RATHOD, DR. T. R. NIKAM, DR. SARIPUT LANDGE & DR. AMIT HATEY
ORGANIZATIONAL CULTURE AND ITS IMPACT ON ORGANIZATIONAL LEARNING - A STUDY ON INSURANCE COMPANIES
DR. N. RAJASEKAR & R. N. PADMA
A STUDY ON THE OPERATIOINAL EFFICIENCY OF THE TAICO BANK THROUGH VARIOUS MODELS
DR. S. RAJAMOHAN & S. PASUPATHI
IMPACT OF ADVERTISING ON CHILDREN AND ADOLESCENTS
N. SUMAN KUMAR & DR. K. KRISHNA REDDY
RECRUITMENT OF TEACHERS VERSUS ADEQUACY - EFFORTS NEEDED TO PURGE THE GAP
DR. PURNA PRABHAKAR NANDAMURI & DR. K. V. RAO
JUNK FOOD VS. ORGANIC FOOD: VALIDITY EXAMINATION THROUGH CULINARY SCIENCE & AGRICULTURE MANAGEMENT FOR A
SUSTAINABLE FUTURE STRATEGY
DR. S. P. RATH, DR. BISWAJIT DAS & CHEF. ANAND SINGH MARWARD
GLOBALISATION AND STATUS OF WOMEN IN INDIA - ISSUES AND CHALLENGES
NAGASANTHI.S & DR. S. KAVITHA
STUDY ON THE RELATIONSHIP OF WORK RELATED STRESS ON ORGANISATIONAL EFFECTIVENESS
DR. SHIKHA KAPOOR
UNDERSTANDING PREDISPOSITION OF CONSUMERS TOWARDS PRIVATE LABELS IN INDIAN GROCERY RETAIL CONTEXT
DR. A. S. SANDHYA, JAYANTHI K. & DR. H. PEERU MOHAMED
COW TO CONSUMER VIA COOPERATIVES AND COMPANY --- QUALITY INITIATIVES FROM ORIGIN TO END CONSUMER – A STUDY IN
BANGALORE DAIRY
L. R. S. MANI
AN EVOLUTIONARY OUTLOOK OF WAL-MART’S GROWTH IN A GLOBAL SCENARIO
HEMALATHA JEYACHANDRAN & DR. HAIDER YASMEEN
INTRUDERS ALTERING THE PERCEPTION OF CUSTOMERS IN THE LIFE INSURANCE SECTOR OF INDIA – A COMPARATIVE EMPIRICAL STUDY
BETWEEN PUBLIC & PRIVATE LIFE INSURANCE COMPANIES
DR. M. DHANABHAKYAM & V. ANITHA
OPINION ON VALUES AND THEIR IMPACT ON INDIVIDUAL EFFECTIVENESS AND SATISFACTION: A STUDY OF PROFESSIONAL STUDENTS
DR. SUJA S. NAIR
STUDY OF RURAL CONSUMER BEHAVIOR IN RELATION WITH WASHING POWDER
PREETI M. KULKARNI
CHALLENGES FOR TALENT RETENTION
S. SUBRAMANIAM
AN APPRAISAL OF NEW DIRECT TAX CODE IN INDIA: A NEW CHALLENGE IN DIRECT TAXATION
SARBAPRIYA RAY
SITUATIONAL ANALYSIS OF BANKING PERFORMANCE IN KOLHAPUR DISTRICT WITH REFERENCE TO PRIORITY SECTOR LENDING
RAMCHANDRA D.PATIL
ISSUES IN RECRUITMENT AND SELECTION
MERLYN MASCARENHAS
EXHIBITING CREATIVITY AND INNOVATION AT WORK PLACE AS ONE OF THE ESSENTIAL REQUISITE FOR MANAGERS - AN EMPIRICAL
STUDY WITH SPECIAL REFERENCE TO COMPANIES OF HARYANA
GEETA DAWAR
REQUEST FOR FEEDBACK
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VOLUME NO. 2 (2011), ISSUE NO. 8 (AUGUST )
ISSN 0976-2183
CHIEF PATRON
PROF. K. K. AGGARWAL
Chancellor, Lingaya’s University, Delhi
Founder Vice-Chancellor, Guru Gobind Singh Indraprastha University, Delhi
Ex. Pro Vice-Chancellor, Guru Jambheshwar University, Hisar
PATRON
SH. RAM BHAJAN AGGARWAL
Ex. State Minister for Home & Tourism, Government of Haryana
Vice-President, Dadri Education Society, Charkhi Dadri
President, Chinar Syntex Ltd. (Textile Mills), Bhiwani
COCO-ORDINATOR
DR. SAMBHAV GARG
Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Mullana, Ambala, Haryana
ADVISORS
PROF. M. S. SENAM RAJU
Director A. C. D., School of Management Studies, I.G.N.O.U., New Delhi
PROF. M. N. SHARMA
Chairman, M.B.A., Haryana College of Technology & Management, Kaithal
PROF. S. L. MAHANDRU
Principal (Retd.), Maharaja Agrasen College, Jagadhri
EDITOR
PROF. R. K. SHARMA
Dean (Academics), Tecnia Institute of Advanced Studies, Delhi
COCO-EDITOR
DR. BHAVET
Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Mullana, Ambala, Haryana
EDITORIAL ADVISORY BOARD
DR. AMBIKA ZUTSHI
Faculty, School of Management & Marketing, Deakin University, Australia
DR. VIVEK NATRAJAN
Faculty, Lomar University, U.S.A.
DR. RAJESH MODI
Faculty, Yanbu Industrial College, Kingdom of Saudi Arabia
PROF. SANJIV MITTAL
University School of Management Studies, Guru Gobind Singh I. P. University, Delhi
PROF. ROSHAN LAL
Head & Convener Ph. D. Programme, M. M. Institute of Management, M. M. University, Mullana
PROF. ANIL K. SAINI
Chairperson (CRC), Guru Gobind Singh I. P. University, Delhi
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VOLUME NO. 2 (2011), ISSUE NO. 8 (AUGUST )
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DR. KULBHUSHAN CHANDEL
Reader, Himachal Pradesh University, Shimla
DR. TEJINDER SHARMA
Reader, Kurukshetra University, Kurukshetra
DR. SAMBHAVNA
Faculty, I.I.T.M., Delhi
DR. MOHENDER KUMAR GUPTA
Associate Professor, P. J. L. N. Government College, Faridabad
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Asst. Professor, Government F. G. College Chitguppa, Bidar, Karnataka
MOHITA
Faculty, Yamuna Institute of Engineering & Technology, Village Gadholi, P. O. Gadhola, Yamunanagar
ASSOCIATE EDITORS
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Department of Commerce, Aligarh Muslim University, Aligarh, U.P.
PROF. ABHAY BANSAL
Head, Department of Information Technology, Amity School of Engineering & Technology, Amity University, Noida
DR. V. SELVAM
Divisional Leader – Commerce SSL, VIT University, Vellore
DR. PARDEEP AHLAWAT
Reader, Institute of Management Studies & Research, Maharshi Dayanand University, Rohtak
S. TABASSUM SULTANA
Asst. Professor, Department of Business Management, Matrusri Institute of P.G. Studies, Hyderabad
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AMITA
Faculty, E.C.C., Safidon, Jind
MOHITA
Faculty, Yamuna Institute of Engineering & Technology, Village Gadholi, P. O. Gadhola, Yamunanagar
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VOLUME NO. 2 (2011), ISSUE NO. 8 (AUGUST )
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INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT
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VOLUME NO. 2 (2011), ISSUE NO. 8 (AUGUST )
ISSN 0976-2183
PROFILING INDIAN CONSUMERS BASED ON ACCEPTANCE OF MOBILE MARKETING
PLAVINI PUNYATOYA
FPM (MARKETING)
INDIAN INSTITUTE OF MANAGEMENT
INDORE – 453 331
ABSTRACT
Mobile marketing has gained popularity over the last several years and its unique characteristics made it adorable to many companies. It is defined as the use of
the mobile medium as a means of marketing communications. With fast changing lifestyles of today's consumers, mobile marketing has evolved as a new ways
to reach target audiences. This paper identifies distinct market segments based on consumers accepting mobile marketing. Demographic and technological
variables were taken as criteria to segment the market. Data was collected from consumers in India and later factor analysis and cluster analysis were conducted
to segment Indian consumers. The result showed that certain variables differentiate market segments from each other. Indian consumers were segmented into
three categories: The knowingly nonuser, The real accepter and The uninterested. The knowingly nonuser segment have technological knowledge about mobile,
but privacy issue and non-innovativeness keep them away from accepting mobile marketing. The real acceptors are relatively younger with technological
knowledge, interest in mobile and they are the real consumer segment accepting mobile marketing. The uninterested segment does not carry any interest or
knowledge about mobile marketing and are not at all interested in it. Firms can use different marketing strategy to target these consumers present in various
segment. Retaining the exiting users of mobile marketing, firms can attract consumers of The knowingly nonuser category using permission based marketing.
This will help to generate more profit and likeability for advertisings through mobile marketing.
KEYWORDS
Cluster analysis, Consumer acceptance, Mobile marketing, Segmentation.
INTRODUCTION
elevision is the first screen where consumers can gain information from marketers. The Internet is the second screen where consumers receive relevant
information about product and services. The evolution of e-commerce has brought with it a new marketing channel known as mobile marketing (mmarketing), or the third screen of communication (Tanakinjal, Deans, & Gray, 2010). Since on-the-go lifestyles of today's consumers make them harder
than ever to reach, new ways to reach target audiences are evolving to stand up to the challenge and mobile marketing is one of them (Leek & Christodoulides,
2009). Mobile marketing is defined as the use of the mobile medium (e.g. mobile phones) as a means of marketing communications (Leppaniemi, Sinisalo, &
Karjaluoto, 2006). New business models for mobile marketing are turning the mobile phone into a marketer-exclusive platform. Marketers can create mobile
portals dedicated to their business or brand (giving their message exclusive airtime with their best customers), a choice of tailored handsets (to match the
brand), preloaded applications that drive further contact with the brand, and any number of other developing technologies that drive home the exclusivity of
the message (Friedrich et.al., 2009).
Atkinson (2006) suggested that 90% of well-known U.S. brands were planning to initiate mobile marketing practices by 2008 and that more than half of them
plan to devote as much as 25% of their total marketing budget toward the mobile platform. The high penetration rate of mobile devices among consumers also
provides an opportunity for companies to utilize this means to convey advertising messages to consumers. This makes various companies to use mobile as
marketing device (Ma, Suntornpithug, & Karaatli, 2009). For example, Adidas introduced a mobile marketing campaign, The Missy Elliott campaign, to
strengthen its position in the U.S. market within the 12-17 year old market segment and to compete with its major competitor, Nike. Another company,
Greystripe, an ad-supported mobile game and application distributor, launched a mobile advertising campaign for the movie “The Golden Compass” in 2007.
This campaign offered downloadable games, playing full screen ads to the audience waiting for their games to load. The campaign increased movie awareness
from 42 percent to 61 percent (Interactive Advertising Bureau, 2008).
Since teenagers and young adults are faster adopting mobile platform, mobile marketing seems have a bright future, but the extent of acceptance by consumer
still remain unclear due to various hurdles, including feelings of intrusiveness and privacy concerns (Sultan & Rohm, 2008). In spite of the growing number of
companies investing in mobile marketing campaigns, there still are several issues that remain to be addressed. The objective of this paper is to identify distinct
market segments based on consumers accepting mobile marketing. The paper begins by presenting the concept of mobile marketing and its importance. Then
the criteria for segmenting the consumers in terms of their mobile acceptance behaviour are discussed. The third section discusses the research methodology
and then results are presented. The last section discusses managerial implications and conclusion.
T
CONCEPT OF MOBILE MARKETING
The penetration of the mobile phone market led to an increased number of applications for mobile marketing. Leppaniemi and Karjaluoto (2005) discussed
about various definitions of mobile marketing present in literature and pointed out that terms like mobile advertising, wireless marketing, wireless advertising
and mobile marketing were the terms used interchangeably in the literature. Mobile Marketing Association (MMA) defined mobile marketing as "the use of
wireless media as an integrated content delivery and direct response vehicle within a cross media or standalone marketing communications program". Whereas,
Wireless Advertising Association (WAA) defines mobile marketing as releasing advertising messages to mobile phones or PDAs through the wireless network (Xu,
2007).
Marketers reduced their spending on traditional media: 61 % on TV, radio and magazines, 52% on direct mail, 11% on e-mail, but increasing spending on social
media (Trends E-Magazine, 2009). It was predicted that online search, e-mail, social media, Web display ads, and mobile marketing combined will represent 21
percent of marketing budgets, or about $55 billion, by 2014. Starting in the ‘90s, Web 1.0 broke down geographic and psychological barriers to selling products
and services. With the Internet, any business could more easily reach global markets and quickly create the impression of an established, credible business. Now,
Web 2.0 is creating communities online that allow buyers to connect with others and follow experts on whatever their interests might be. These connections
allow buyers to effortlessly learn about new solutions that they might want to purchase. They don’t need to weed through the information overload themselves;
they benefit from others who do so. Because Web 2.0 has changed the way people buy, it requires a change in the way businesses sell (Trends E-Magazine,
2009). Since mobile marketing is part of the Web.2 technology the future growth is phenomenal. Since mobile devices are personal marketers can directly
engage customer by replying to the message content. So customers are active here, rather than passive in traditional medias (Bauer et al., 2005). The main
characteristics of mobile marketing strategies are personalization, localization, uniqueness, ubiquity and interactivity (Bauer et al., 2005). It also has high
retention rate, high reach, high response rate and low cost (Pearse, 2005). It has been suggested that in the mobile marketing network, firms can get customers
engaged through a call-to-action which is not possible via other media channels and make customers respond via text messaging, multimedia messaging, picture
messaging, Bluetooth alerts, or voice channels on their mobile (Carter, 2008). Jong and Sangmi (2007) found that mobility, convenience and multimedia service
were positively related to attitudes toward mobile advertising, which in turn lead to favourable behavioral intentions. Godin (1999) pointed out that consumers
who subscribed to a particular company were usually interested in that company's services and products, and hence, when consumers received SMS advertising
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A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 2 (2011), ISSUE NO. 8 (AUGUST )
ISSN 0976-2183
messages, they were more likely to pay more attention and read the message compared to consumers who receive messages from companies which they are
not subscribed with. Leek and Christodoulides (2009) discussed about Bluetooth technology present in mobile, which is a location-based advertising technology
(Bruner and Kumar, 2007). It can be used to enable location-specific targeting that allows advertisers to target their audience based on specific venues (for
example, in a supermarket) and deliver relevant and real time promotions. The downside of Bluetooth, however, is that—unlike SMS and MMS—it only can
operate within a limited range.
But some other negative aspects are there related to mobile marketing. Whitaker (2001) reported that many consumers considered mobile phones as a very
private and personal item and were more reluctant to share information with unknown companies. Heun (2005) found only 12% of consumers were willing to
receive any forms of wireless advertisements, even if they could control what to receive. There are many factors that affect mobile marketing. Consumer trust,
privacy issue (Al-alak & Alnawas, 2010), knowledge, interest in technology etc. affect his acceptance of mobile marketing. Recently the rapid development of
technology leads to acceptance of mobile by consumers and this made companies to make mobile as a growing and contemporary medium for marketing.
SEGMENTATION OF CONSUMERS ACCEPTING MOBILE MARKETING
To set a market segmentation process in motion, one first needs to choose a set of variables that will then compose the so-called segmentation bases or criteria
used to identify patterns in accepting mobile marketing. Next, an attempt will be made to provide an overall perspective of the various segmentation bases and
their respective variables, seeking to direct the approach towards the situation of the green consumer market. Specifically, the demographic, and segmentation
criteria related to technology acceptance will be examined.
DEMOGRAPHIC CRITERIA
The variable Age has been used by many marketing researchers to segment the market (Jain & Kaur, 2006; D’Souza et al., 2007). Technology was mostly
accepted by youngsters faster than older generations. But Skog (2002) reported that teenagers are not homogeneous audiences for mobile phones as their
usage patterns and attitudes varied widely depending on their social background, technological literacy and urban/rural lifestyles. Sultan and Rohm (2008)
discussed about the study where nearly 70 % of U.S. and 94% of Pakistani respondents use mobile phone or do other activities in mobile. Gender is another
variable that can be used to segment the market. Male and female are differently affected by technology and the acceptance rate might be different. Individuals
with higher Education level will have more interest in technology and hence, accept mobile marketing faster. Income is generally believed to be positively
correlated with accepting new technology. Because people with higher income will easily bear the marginal increase in cost, while purchasing high technology
products, like mobile (Straughan & Roberts, 1999).
TECHNOLOGICAL CRITERIA
Technological interest may be defined as an attitude to try and use new technological products. This attitude is influenced by direct personal experience, past
reaction and trust (Al-alak & Alnawas, 2010). It is also affected by experience of other individuals and communication by media. Sultan and Rohm (2008) pointed
out that usage characteristics affect consumer acceptance of mobile marketing. Since consumers get utility, content, enjoyment and experience from mobile (by
browsing, chatting, and developing social network), these aspects affects the youth. Since mobile is a personal device, responding to SMS as using sending,
receiving or deleting made consumer to interact with the message (Zang & Mao, 2008). If consumers agree to receive SMS messages from advertisers, they tend
to react positively to them (Barwise & Strong, 2002). Consumers’ attitudes toward products, brands and advertising are linked to behavioral intent, and people
with positive attitudes toward mobile services have greater intent to use them. Knowledge about mobile phone also affects purchase of mobile and acceptance
of mobile marketing.
Cell phone is an integral part of many customers i.e. more than just a communications device. The extent of people’s personal attachments to their phones could
be a factor in their willingness to engage in mobile marketing activities. Consumer innovativeness (the degree to which they are open to new experiences,
information and technology) also affects the acceptance of mobile marketing (Bauer et al., 2005). Youngsters use mobile phone as their social symbol and social
pressure play a major role to accept the new technological product (Nysveen et al., 2005).
Privacy concern of consumers negatively affects the acceptance of mobile marketing (Sultan & Rohm, 2008). McKnight et al. (2002) found in their study about ECommerce that trust was an important factor which had a significant influence on consumers' intention to make online transactions. Therefore, it is expected
that in mobile marketing, where the perceived risk and uncertainty is high, trust will influence consumers' intention to participate in permission based
advertising programs. So many times companies obtain consumers’ permission through opt-in programs to increase their acceptance of mobile advertising
(Barwise & Strong, 2002).
RESERCH METHODOLOGY
The literature review on segmentation of the mobile market has highlighted the fact that the various types of consumers may have different concerns and
emotional attachments towards the mobile marketing, different technological knowledge and different behaviours. As mentioned earlier, this paper seeks to
identify different segments of consumers accepting mobile marketing. Given the complexity and the range of variables that may determine the characterisation
of these groups, as made evident in the literature review, it was decided to focus this research mainly on analysing the technological and demographic criteria.
The paper tries to answer the main research questions:
•
Is it possible to clearly identify, in India, a consumer segment based on acceptance of mobile marketing?
•
How different are these segments from each other?
The data used in this study were collected through a survey of Indian consumers. The model of data collection was a survey method. The final sample was
composed of 132 individuals. The detail profile of the respondents is given in Table 1. The questionnaire was composed of two main sections. In the first section,
data were collected about the demographic characteristics of respondents (gender, age, income, educational level and job / occupation). The second section
examined the technological dimension (usage, personal attachment, knowledge, behaviours, information search, social influence, mobile buying behaviour,
consumer innovativeness, sensitivity to price, privacy and trust). The scales used to measure the dimension was 5-point Likert scales (1 =strongly disagree; 2=
disagree; 3=neutral; 4= agree; 5= strongly agree).
After collection, the data were statistically analysed and interpreted using the statistical software SPSS 16.0 (Statistical Package for Social Sciences). The data
obtained were submitted to a Multivariate Statistical Analysis, which included factor analysis and cluster analysis. After this, characteristics of different segments
are found.
Gender
62% are male
38% are
female
Age
39% are 15-25 yrs
26% are 26-40 yrs
18% are 41-55 yrs
13% are 56-65 yrs
4% are 66 yrs or
more
TABLE 1: PROFILE OF THE RESPONDENTS
Qualification
Job/Occupation
7% have education upto matriculation
34% are students
24% have education upto higher secondary
38% are job-holders
level
12% are businessmen
43% have education upto graduation
9% are housewives
26% have education upto post-graduction
7% are retired persons
Income Level
43% have no income
10% have less than Rs10,000/month
21% have Rs 10-20, 000/month
14% have Rs 20-40, 000/month
12% have more than Rs 40,
000/month
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT
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VOLUME NO. 2 (2011), ISSUE NO. 8 (AUGUST )
ISSN 0976-2183
RESULTS
As the number of variables used in this research is quite extensive, an exploratory factor analysis was used to simplify the interpretation of the variables. Each of
the factors was depicted by means of several items used in the questionnaire. Factor analysis used principal component analysis method and eigenvalue of
greater than 1.0 as the criteria to select factors. The variables were grouped into seven factors and together they account for 77.75% of the total variance. To
check the internal validity, the reliability analysis was performed using cronbach’s alpha coefficient. For the seven factors the levels of alphas were more than 0.6
and it showed internal consistency in the research (Nunnally, 1987). Cronbach’s alpha was again calculated for new group of factors and it was 0.921. The factors
found are described below:
1. Mobile usage Characteristics (F1): The first factor reflects consumers’ usage characteristics or the reason why he uses mobile phone. It affects the mobile
marketing acceptance.
2. Technological knowledge (F2): The amount of knowledge consumer has about the mobile and its technology affect usage of mobile and its acceptance.
3. Consumer innovativeness (F3): The third factor is related to readiness of the consumer to accept new technology like mobile marketing.
4. Privacy issue/Trust (F4): The variables present in this factor represent a combination of issue related to privacy and trust of consumer. This may negatively
affect the mobile marketing acceptance.
5. Economic factor (F5): The price a person pays to accept the new and contemporary technology plays a major role in mobile marketing acceptance.
6. Social influence (F6): Social groups to which consumer belong, friends, family affect the mobile marketing acceptance of a consumer and made him to
accept/reject the new marketing media i.e. mobile.
7. Attitude to mobile marketing (F7): The factor represent consumers liking, desirability and interest in accepting the mobile marketing.
The results obtained from factor analysis and reliability coefficients are shown in Table 2. The seven factors were then used as inputs in later analysis (cluster).
Hierarchical clustering was used to analyse the data. Agglomerative method is used in analysis, as it gradually build the clusters i.e. clusters formed by adding to
existing cluster. Between group linkage and squared Euclidean distance is used to find number of clusters. Each variable is standardized using Z-scores to
eliminate effect of scale difference.
TABLE 2: RESULTS OF FACTOR ANALYSIS
Factors
F1
F2
F3
F4
F5
F6
F7
Eigenvalue
7.211 4.213 3.145 2.714 2.062 1.988 1.436
% of variance explained 31.12 13.44 10.11 7.23
6.22
5.26
4.37
Cronbach’s alpha
0.866 0.789 0.723 0.706 0.672 0.629 0.834
The cluster analysis gave a three-cluster solution. The first group of consumer showed more technological knowledge and interest, but price sensitive and have
privacy issue. The second group has a higher technological interest and innovativeness. They are influenced by their social groups and have positive attitude to
mobile marketing. The third cluster does not have much interest and attitude for mobile marketing. This answers the first research question that, it is possible to
identify a mobile marketing consumer segment. The clusters obtained are analysed in detail and it was found that the clusters are significantly different from
each other, which answered the second research question, that the clusters are different from each other.
DISCUSSION
The clusters are named and differentiated based on their characteristics. They are:
SEGMENT-1: THE KNOWINGLY NONUSER (36%)
This segment mainly consists of both young and old consumers with high education level (graduation, post-graduation). They are working professionals,
businessmen, and students. They have technological knowledge related to mobile, but price sensitive and have privacy issue. They are sceptical about mobile
marketing and do not trust such mobile marketing schemes. They only use mobile for calling or messaging purpose and do not as a media device. They are less
innovative and privacy plays a major role in their life. Apart from students, the working professionals and servicemen have moderate (Rs 10-20,000/month) to
high income level (Rs 40,000 and above), but do not want to spent on purchase mobiles with hi-tech features. So they are aware of technology and mobile
marketing, but are not using it.
SEGMENT-2: THE REAL ACCEPTER (37%)
This segment composed of relatively younger consumers and very few middle-aged consumers. They have relatively higher education level than segment 1 and
working in more qualified jobs (specialists in own field, middle and senior manager) and earn relatively higher. Only students belonging to this category have no
income. This segment has higher technological interest and innovativeness. They want to try new products and services and are able and interested to spend for
it. They know multiple use of mobile and go for it. Social group and peers influence affect them more, especially the younger customers. They have positive
attitude to mobile marketing and family members also play major role to teach them many functions of mobile. So they are the real accepters of mobile
marketing.
SEGMENT-3: THE UNINTERESTED (27%)
This segment includes individuals of higher age group (41 years and more) with marginal to higher educational level. This segment does not have much interest
and attitude for mobile marketing. They are not only sceptical about privacy issue but the whole new technology of today. They act as per their own interest and
do not have much technological know-how. Their knowledge about the mobile marketing is low to moderate level. These are the consumers who were not at all
interested in mobile marketing.
LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH
The study is only based on 132 consumers of India. This segmentation can be conducted by taking more consumers from various parts of India. Since the study
has taken place in one country, it limits the generalization of the finding. In future a cross-cultural study can be done to know the segments related to mobile
marketing in other parts of the world. The study has taken only two criteria for segmenting the market: demographic and technological. More criteria can be
taken into consideration, like psychological, behavioural etc. broaden the research. So the limitations of this study gave a lot of scope for working further and
new areas of research can be explored.
CONCLUSION AND MANAGERIAL IMPLICATIONS
The results of this study show who are the consumers using the mobile marketing and accept it and how certain variables differentiate one segment from other.
In spite of the fact that India is a developing country, it has a lot of consumers accepting the mobile marketing. Since many consumers accept mobile marketing
in India, it showed a technological acceptance by the mass. Advertisers can plan their ad budget accordingly and can focus on mobile advertising.
Since the segments differ significantly, firms can target a particular segment differently than other. “The real accepters” like mobile marketing, so the current
strategy should be followed by firms to retain them and they should be given some incentives if possible. Companies can attract “The knowingly nonuser”
segment by permission based marketing (Barwise & Strong, 2002). If the consumer will permit/opt-in, firm will send SMS, MMS about present offerings etc. As
far as “The uninterested” segment is concerned, firms should let them go. Because, it is really difficult to change the stubborn minds of consumers belonging this
segment. So firms should act accordingly to target right customer in right place and in right way to gain more profit.
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A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 2 (2011), ISSUE NO. 8 (AUGUST )
ISSN 0976-2183
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